Multilevel Marketing Basics

To put it simply, Multilevel Marketing Strategy involves sales teams promoting specific products hierarchically. The products are being sold to the customers pretty much directly and in the process sales teams recruit additional sales reps. By nature, multilevel marketing is very similar to referral marketing strategy. The focus is an established community that is interested in updated purchases of chosen product selection.

How does it work?

Basically this is B2C communications. At a certain point a customer becomes an unofficial promoter of the product due to benefits available by their newly recruited customer base. This activity can also be referred to as being a Brand Ambassador. In Social Media communications for example, certain influencers make official agreements with companies to represent them on specific platforms. In this case, a brand ambassador pretty much chooses to be one and carries out the rest of referral work for personal and market benefits.

MLM Hierarchy System

Multilevel Marketing Hierarchy is known as Flat Hierarchy. This means, that the difference between the positions of newcomers and top executives is a bare minimum. The basic roles in this business model are: CEO, sales representative, distributor, sponsor and recruiter. The positions work in harmony and the importance of them is actually just as equal. So, simply speaking a distributor does not stand higher in hierarchy than a sales representative. All of the above are vital roles in Multilevel Marketing model.

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Popular MLM Products

As you know, marketing strategies are chosen in relevance to the production. The sales plans work best with Multilevel Marketing related products are listed here:

• Farmer’s Fairs
• Online Events
• Social Media Groups
• Home Visits
• Word of Mouth
• Viral Communications
• In Person and Virtual Parties

Active Communication in Multilevel Marketing

Based on the discussions and observations in previous paragraphs, it is clear that Multilevel Marketing depends greatly on active communication. Also it’s important to be noted, that these communications rarely have a digital form and tend to be rawer and personal. This is exactly where MLM collides with referral marketing.

But, the thing about MLM that still differentiates it from Referral Marketing is its organized form of referral systems. What we mean is, that in referral marketing customers play a PR role mostly simply because of their emotional connection to a brand or a product.

In MLM referring system is more organized and has a corporate form. Customers are practically recruited for communications. And, the motive is more likely to be the benefits one is guaranteed to have in case of successful referral sales.

Basic MLM requirements for Successful Business

Let’s review several basic requirements of the given marketing strategy to conduct a successful plan which will primarily show up on our sales statistics:

• MLM Strategies focus on recruiting sales representatives that will widen the view and perspectives of the business. It’s a long-term attitude, not a short-term one.
• MLM Strategies also focus on buy-back guarantees. It’s necessary to not let the products go to waste if several sales reps can’t succeed in selling them.
• The given strategy betters the products benefits both for customers and their reputation. Don’t be selfish.
• For representative membership there is a very minimal purchase necessity. So, as an ambassador you will not get stuff completely for free, but at the bare minimum price.
• MLM businesses include research and a strategy to focus on a target customer for sales teams to focus on.

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For more similar articles make sure to scroll through our Publications on Edana. And, don’t forget to check our services for Expert-Level assistance from your Swiss Digital Agency. Our expertise includes Paid Advertisement Services and many more. Feel free to contact us anytime!

What is Bad Marketing?

It is actually quite difficult to make a mistake in marketing bad enough to label the whole campaign as a failure, but well, things happen and not just once, but multiple times. Bad marketing can be actually going against the rules of good and excellent marketing. Easy as that, but let’s still review the disaster in details to make sure you avoid it.

Poor Customer Research

Customer research is the fundament of any marketing campaign. If you don’t do it for the target audience, or specific purpose to serve the idea-then why even bother and especially invest? Poorly targeted marketing campaigns will have no impact whatsoever and will only result in a waste of budget and time.

Terrific Marketing Copy

We have dedicated several articles to creating a good marketing copy that sells. The basics of marketing copy include targeted language, inclusivity and a pinch of humor if necessary. Also, big complex texts just never work. Forget about it.

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A marketing copy that has not been consulted with creative team could possibly ruin even the greatest graphic design on earth or make it a meme which harms your reputation. So, you will end up getting PR in wrong context or getting sued in the worst case.

Wrong Medium

Not every product or service you offer can be eligible for all physical or digital mediums out there. Sometimes you simply need to take a different approach. Well, most of the times, but sometimes is a bare minimum which is just a shame to neglect.

Imagine trying to sell a product that you praise for its beauty or aesthetics via phone call! Not so smart is it? Maybe a graphic depiction could be a better option? And just maybe use an E-Mail for this campaign, to actually show the product.

Poor Financial Offers

Sales and free trials or samples are a holy grail for long-term financial plans. There are certain products we only buy on sale sometimes. The point is to not get too greedy. Now, for example-let’s say you have a clothing shop. You announce having seasonal sale on your location and putting summer goods on outlet because it’s winter now.

If you were to enter a shop with the excitement and found it was only 10% off, wouldn’t you be very disappointed? Or especially having this offer on a Black Friday. It’s strategically crushing for your business.

Ads with No Call to Action

Advertisement is mostly effective when it can respond to customer’s needs and drive them to complete a certain action. Especially social media ads which are flexible for this reason specifically. Even older TV ads had a phone number at the bottom to contact the seller, so in digital era it would be very inconvenient to offer something without even a chance of communication.

Too Much Fun

Some ads are funny and we love them, but we are not investing our budget for simply watching a comedy show right? So, your ad might be a little too funny, but if it leaves no desire to actually purchase the advertised product-then it’s no good. We can bet you have at least one like this in your mind and you never really purchased the product.

Wrong Keywords

Now, this one is simply too difficult to mess up. Keywords for all business industries are quite specific. It would take an extremely poor research to use inconvenient keywords. Still, anything is possible.

Let’s review the examples of Instagram hashtags. Say, you have a bakery business and you decided to create video content on Disney themed cake. Imagine using all Disney related hashtags and missing out on the ones which refer to a cake itself!

Possibly as a result the kids could view your video just for fun, but the target audience will be left out. So, make sure you don’t fall off-track when picking keywords for your digital campaigns.

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For more similar articles make sure to scroll through our Publications on Edana. And, don’t forget to check our services for Expert-Level assistance from your Swiss Digital Agency. Our expertise includes Forming Brand and Re-Branding Strategies and many more. Feel free to contact us anytime!

The Rules That Were Made To NOT Be Broken

We have all heard a famous phrase that rules were made to be broken, but in this case, let’s take into consideration our own longevity as a brand and try not to break specific rules.

Improvisation in marketing field is a great benefit, but there are certain basics we still have to follow up with for our rebellious communications to work effectively. We shall be reviewing several basic rules of digital marketing in this article and how they create a fundament to our business Growth.

Rule 1-Focus On The Target Audience

Prior to focusing, you must surely figure out who’s the target audience in the first place. That’s why you need research in the beginning. Depending on the core ideals of your enterprise you can more or less understand the who is the best possible target customer for you.

Age, demographics, genders and basic interests play a huge part here. There are surely several brands which have universal target audiences like Coca-Cola for example. The point of focusing on target audience is to make sure you don’t waste your marketing recourses on the people who are simply not interested in your products or services.

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Rule 2-Demonstrate Your Work Ethic

Gate-keeping your brand’s working process will surely do you no good as business owner. Target audience loves to have a sneak peek of how you organize your working processes. Especially if your brand focuses on eco-friendliness or handmade goods-it’s a great marketing strategy to demonstrate your craft and actually show off.

Such strategies work best in the form of video content-which generally has educational properties and engages your audience to a whole new level. To put it simply, make sure you stay tuned to customer’s curiosity and give them interesting, research oriented content.

Rule 3-Be Active On Social Media

The best possible platform for real-time communication that you can have is social media. Keep in mind, that social media user interfaces are comfortable enough on a mobile level for the user to access it anytime and anywhere.

We have become lazy to go to multiple websites to find separate content. Social Media helps you more or less group your content on one platform to later spark interest in a customer to transfer to your website.

Social Media marketing is an irreplaceable element of your digital marketing strategies to enable higher engagement and conversions. Make sure you don’t miss out on this one.

Rule 4-Showcase Your Role Clearly

The product is wanted basically for its purpose and what role it promises to play in certain aspects of our lives. Make sure to have a clear message about what your mission is as a brand.

Having marketing campaigns targeting unclear purposes and ideas will only confuse a potential customer and possibly make them uninterested in your activities. Make a clear promise and what’s more important-keep it!

Rule 5-Be Creative

Now, creativity and rebelliousness is not quite the same. There are loads of mediums out there in marketing world to use for creative advertising of your products and services. Creative can often mean fun as well. The great example is Tropicana’s advertisement for their orange juice.

They literally went to the arctic and brought the artificial sun to the people who are going through a long period of sun absence. The idea of the brand is to make your mornings fun, isn’t it creative to bring sun to a sunless place alongside with the orange juice?

Rule 6-Tell A Good Story

Storytelling and copywriting are the vital parts of advertising in all forms and mediums. A good message has to be short enough, but catchy as well. In one of our articles we have detailed information about how marketing copy can be more readable and selling. Creativity plays a huge part as well. A great story will be memorable and so will be your commercial alongside with the brand-name.

What We Offer

For more similar articles make sure to scroll through our Publications on Edana. And, don’t forget to check our services for Expert-Level assistance from your Swiss Digital Agency. Our expertise includes Branding Strategy Planning and many more. Feel free to contact us anytime!

Customer retention is the key to the sustainability of the business and if you do it right, it can increase your profits. But it is not as easy as it may sound.

Some people confuse customer acquisition with customer retention, both are important but they are essentially different. While customer acquisition means gaining new customers using different methods, customer retention is about finding the reasons why the current customers tend to leave and works on getting them back. The company’s main goal is to create a loyal customer data base, but it can’t be achieved without customer retention.

What can be the reason why clients tend to leave the company?

Customers tend to move on for many reasons, which can include lack of perceived value, poor customer service and difficulties faced in buying process. ”What is the solution?” You may ask. It is taking into account each feedback and following the customer journey to identify the exact reason and work on it on a long run.

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Customer retention benefits

There are many benefits you can get out of customer retention:

• Increased profits

Many companies tend to generate profits only from existing clients, never questioning the reason of retention. So if you work on it, you will get bigger cliental and increase your profits even more.

• Lower costs

It is more cost-effective to work on your existing clients and make sure they don’t leave, rather than searching for the new ones, which also can be time-consuming and prove to not be as efficient as customer retention.

• Increased average order value

When customers start trusting you, they tend to increase the volume of the orders. Hence, you need to give them maximum satisfaction.

• Acquire brand ambassadors

There is no better way to promote your products other than having an influencer promoting it. Word of mouth works better than any commercial and it not only gives reassurance to the clients that the product is really good but the real life experience factor makes them trust in you, that is why having a brand ambassador will increase the loyalty of customers.

5 strategies to improve customer retention

Here are some practical ideas you can use, to improve your customer retention:

• Engage with your customers

Conversing with the customers is the best way to find more about their interests and involving them in the creation of upcoming products will make them feel like they are part of the brand.

• Reduce friction in the purchase process

When buying products, customers also look at the process as well, so it is important to make the purchase process simple, with fast page load time and make sure that staff member is always available when there is an issue.

• Improve customer support

Offer multiple ways of how customers can reach you, be it via social media, email or phone call.

• Create a community

Create an exclusive membership programs or forums, where you will be able to interact with your customers, talk about their expectations and get a real time reviews of product to further improve your services in the future.

• Start a loyalty program

Motivating your customers is a great way to make them do additional purchases. Just make sure that you have appropriate rewards that have significant meanings to attract customers to your brand.

 Conclusion

It is not an easy task to keep your customers in the current competitive market, but no one said that it is impossible. Before finding new customers, it would be better to focus on the current ones, taking into account their opinions will help you improve. With the use of word of mouth, your cliental will eventually grow naturally.